Yogurt Shop Insurance

Frozen yogurt franchise insurance

Opening any type of business requires research, hard work, and dedication. But a great way to find success in a business that displays an outstanding track record and enormous growth investing in a proven model. The frozen yogurt business in California has had tremendous success with the rising demand of healthier dessert options. Becoming a franchisee can have great rewards but to ensure the stability of your business and financial growth, you must be prepared for any catastrophic event or accident.  All kinds of risks are out there that can have a negative impact on the future of your business.

What Risks You Face and The Yogurt Shop Insurance that Protects You

Workers’ compensation insurance

In most states, workers’ compensation insurance is a requirement when operating a business with employees. Worker’s compensation pays for injuries and illnesses that are work-related. Assume an employee of your yogurt shop was carrying a heavy container of yogurt. The employee slips and drops the bucket on his or her foot and the foot breaks. Not only does worker’s compensation insurance cover the medical costs; they also include the costs of lost wages.

Commercial Liability Insurance Coverage

This policy operates very much like workers’ comp insurance, except it has limits that we’ll help you decide on what’s best for you. The coverage is for illness or injury as well as property damage to others. A bad batch of yogurt, a slip and fall accident, a car crash involving your delivery truck (requires commercial auto) and an infinite number of unknown reasons for claims against you, your business and your employees is a covered incident with commercial liability insurance coverage.

However, liability insurance covers even more.

• Investigations, settlements, and lawsuits

• Miscellaneous: includes things as advertising (you violated a copyright) and some coverage for alcohol-related incidents provided your company is not an alcohol-related business.

Business interruption insurance

What happens if a fire or some other incident causes you to close for a short period? Expenses still must be paid, so you need a Business Interruption insurance policy to protect you and your business from this peril.

This kind of insurance policy helps your business maintain a positive net cash flow for a short time. It pays for:

• Lost net income

• Continuing expense (rent or mortgage, equipment leases, advertising, salaries and taxes.

• If you find a place to relocate temporarily, the policy pays for relocation and advertising fees related to the temporary location.

Equipment or Property Insurance

What do you do when your yogurt machines stop making yogurt? Perhaps your shop was vandalized, and all five of your machines could no perform. Pretty much, you have nothing to sell. Unless of course you have all risk equipment insurance. All risk means that you are protected from any peril that damages your equipment. You do not need to specify which perils you are protecting your business from – all risks means just that – complete protection. However, if you live in a place such as California where the risks from an earthquake is high, you may want to add additional coverage for your risk, such as windstorms, tornadoes, and earthquakes.

There are many important yogurt shop insurance coverage’s available by adding endorsements or purchasing separate policies. Contact Precision who can help you decide what, if any, other coverage’s you need.

Sample start-up costs for a yogurt shop

A frozen yogurt shop can be a financial challenge depending on your situation or access to capital. But once you enter the world of serving one of the most favorite comfort foods, you may find great passion and a great ROI. The cost of equipment, furniture, marketing, and supplies can add up – as it is with many start-ups.  Let’s assume a shop has five serving machines. Okay, here is a sample of what the costs may include.

Equipment

• 5 machines @$12,500 each – $62,500

• 1 two door refrig – $2,000

• 1 two door freezer- $2,000

• Topping display with sneezeguard, – $2,500

• POS System- $4,500

• Other Kitchen equipment (hand basin, mop sink, 3 compartment sink) – $1,500

• Supplies- $1,000

• Tables, chairs, tv’s and WiFi – $5,000

Equipment total – $81,000

Building costs

• Build-out- $150,000

• Signage- $5,000

• Menu board- $2,000

• Inventory- $4,000

• Prepaid Expenses (lease deposit, utilities deposit, permits) $7,000

Total building costs – $168,000

Professional Fees

• Architect – $2,500

• Attorney – $3,000

• Accountant – $2,500

Total Professional fees – $8,000

Marketing 

• Advertising – $2,000

• Grand opening – $3,000

•  Website – $1,500

Total Marketing costs – $6,500

Estimated Total- $260,000

Great choice for insurance to cover your yogurt business

Precision has many programs for yogurt business insurance that it allows us to find the best value for you. Each franchise owner has different needs and qualifications that can determine which insurance company is most suited. Our affordable yogurt shop insurance will not only give you peace of mind because of outstanding service and claims handling, but also help lower your insurance costs. Get a quote today!